San Diego to bid for Amazon's HQ2 second headquarters location

San Diego intends to throw its hat in the ring for Amazon’s HQ2 – a second headquarters location for the Seattle e-commerce giant that could eventually employ 50,000 workers.

City officials confirmed that they plan to respond to Amazon’s unusual request for proposals for a $5 billion second headquarters campus by the Oct. 19 deadline.

“San Diego has the geographic proximity to international markets, unparalleled quality of life and workforce talent that companies like Amazon are looking for, so Mayor (Kevin) Faulconer’s office has directed the San Diego Regional Economic Development Corp. to coordinate a regional response,” said Matt Awbrey, Faulconer's Deputy Chief of Staff, in a statement.

Amazon announced Thursday that it was searching for a second home to complement its current downtown Seattle headquarters. The company will consider cities with more than a million people, a tech savvy workforce, a business friendly environment and the ability to “think big and creatively when considering locations and real estate options.”

Competition for Amazon’s HQ2 will be fierce -- given that the company expects to create jobs with average salaries of more than $100,000 per year. Already, Baltimore, Chicago, Philadelphia, Dallas, Houston, New York, Toronto and Sacramento are among the municipalities expected to submit bids.

Amazon’s eight-page call for proposals is wide ranging. While it lists a few key preferences that will drive its decision, it doesn’t rank them in terms of importance. It isn’t clear whether cost of living/high housing prices will be considered.

“What we also don’t know is whether they are going to exclude the West Coast because they already have a West Coast presence,” said Gary London, head of San Diego real estate consulting firm The London Group Realty Advisors. “It make sense to me, since they are already on the West Coast, that they would be looking at HQ2 on the East Coast, Midwest or Southern states.”

But if Amazon is open to a second West Coast location, London believes San Diego has a chance to be in the thick of the competition.

“If they say what we want is a creative, happening, urban, high quality of life city with the right kind of employee already in place, we can win,” he said.

Amazon initially plans to begin work on 500,000 square feet of space by 2019, but it could expand to as much as 8 million square feet – the size of its current footprint in Seattle – over the ensuing 15 to 17 years.

The company said it will consider open land, urban infill sites and even existing buildings. It wants sites within 45 minutes of an international airport and no more than two miles from major highways. It prefers the site have access to mass transit.

“We expect HQ2 to be a full equal to our Seattle headquarters,” said Amazon Founder and Chief Executive Jeff Bezos in a statement. “Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high paying jobs. We’re excited to find a second home.”

Amazon is also looking for a stable tax structure and state/local incentives to offset building and ongoing operational costs.

Downtown San Diego, as well as the former Qualcomm Stadium site in Mission Valley, would be able to accommodate Amazon, said London.

“We have in excess of 80 blocks of developable property available in downtown San Diego, more than half of which is in East Village and many of which are contiguous,” said London.

The 166-acre Qualcomm Stadium site is close to mass transit and freeways, he said. In addition, it is city owned, which gives local officials flexibility to potentially offer favorable terms on the land to lure Amazon.

A few sites in South County, such as the Chula Vista waterfront at the foot of H Street, also could work for Amazon, said London, but they’re less attractive than downtown or Mission Valley.

The economic impact of landing Amazon’s additional headquarters makes it hard for cities to ignore. Amazon estimates that its investments in Seattle from 2010-2016 generated an additional $38 billion to that city’s economy.

“San Diego Regional Economic Development Corp. is aware of Amazon's intent to form a second headquarters operation in the U.S. Our team is evaluating the details and coordinating a regional response in collaboration with the City of San Diego, County of San Diego, sub-regional economic development organizations, other city partners and the state,” said Mark Cafferty, chief executive of San Diego Regional EDC.

CAPTION

San Diego has agreed to sell 16 lots in Nestor for $1 each, in the pursuit of affordable housing. The nonprofit San Diego Community Land Trust plans to build three and four-bedroom homes there for people with moderate incomes. That means a family of five with an income of up to $102,750.

San Diego has agreed to sell 16 lots in Nestor for $1 each, in the pursuit of affordable housing. The nonprofit San Diego Community Land Trust plans to build three and four-bedroom homes there for people with moderate incomes. That means a family of five with an income of up to $102,750.

CAPTION

San Diego has agreed to sell 16 lots in Nestor for $1 each, in the pursuit of affordable housing. The nonprofit San Diego Community Land Trust plans to build three and four-bedroom homes there for people with moderate incomes. That means a family of five with an income of up to $102,750.

San Diego has agreed to sell 16 lots in Nestor for $1 each, in the pursuit of affordable housing. The nonprofit San Diego Community Land Trust plans to build three and four-bedroom homes there for people with moderate incomes. That means a family of five with an income of up to $102,750.

CAPTION

Toys R Us still sells about 20% of the toys bought in the U.S., according to an analyst at Jefferies LLC.

Toys R Us still sells about 20% of the toys bought in the U.S., according to an analyst at Jefferies LLC.

CAPTION

Amazon's short list of cities for its second headquarters includes New York, Chicago, Pittsburgh, Austin, Atlanta and Miami.

Amazon's short list of cities for its second headquarters includes New York, Chicago, Pittsburgh, Austin, Atlanta and Miami.

CAPTION

Electric vehicles and hybrids are among the 400 makes and models on display at this year's San Diego International Auto Show.

Electric vehicles and hybrids are among the 400 makes and models on display at this year's San Diego International Auto Show.

CAPTION

If the deal is successful, Aetna would gain more information on patients by having access to data from CVS clinics and retail counters. (Dec. 4, 2017)

If the deal is successful, Aetna would gain more information on patients by having access to data from CVS clinics and retail counters. (Dec. 4, 2017)